FAMILITES AND SMALL BUSINESS WILL GET CASH PAYMENTS FROM GOVERNMENT

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The Government has announced a $17.6 billion investment package to support the economy for the impact of the coronavirus. Parliament will finalize the rules in coming weeks.

See below what you will get in simple words:

TAX FREE PAYMENT TO FAMILIES
A one-off, $750 cash payment will be made to pensioners, social security, veteran and other income support recipients and eligible concession card holders. Payments will be from 31 March 2020 on a progressive basis, 90% are expected to be made by mid-April.

TAX FREE CASH PAYMENTS TO SMALL BUSINESSES
·        If your turnover is less than $50 Million per year (based on last year’s turnover) and you have employee/s between January 2020 and June 2020 then you will get minimum $2000 and maximum $25000. The payment will be calculated at 50% of your payg tax withheld or $25000 whichever is less. If you are not withholding any tax but still are reporting Salary in the BAS then minimum payment of $2000 will be made.
·        The lodgement of the BAS will trigger the entitlement and be paid by ATO as a credit to your GST account. If the GST account has credit balance then this will be paid by ATO within 14 days.
·        The payment will be made for March and June Quarter BAS  if you are lodging quarterly, and for monthly BAS for all months from March to June.

TAX INCENTIVES FOR BUSINESS

A.    Increase in the amount of Instant asset write off:
From 12 March 2020, the instant asset write-off threshold will increase from $30,000 to $150,000 for all business entities with aggregated annual turnover of less than $500 million until 30 June 2020.
B.    Accelerated depreciation deductions:
Businesses with a turnover of less than $500 million will be able to deduct 50% of the cost of the asset in the year of purchase irrespective of the amount of the asset in addition to the normal depreciation of that asset. They can also claim a further deduction in that year by applying the normal depreciation rules to the balance of the asset’s cost.
In addition to the increased instant asset write-off rules, accelerated depreciation deductions will apply from 12 March 2020 until 30 June 2021.

 
Wage subsidy of up to 50% of an apprentice or trainee wage
Eligible employers can apply for a wage subsidy of 50% of the apprentice’s or trainee’s wage for up to 9 months from 1 January 2020 to 30 September 2020. The payments are accessible to businesses with less than 20 employees. Employers will receive up to $21,000 per apprentice ($7,000 per quarter).


Disclaimer: Any information in this article is of general nature only. Any person should, before acting on the content, consider the appropriateness of it having regard to their own personal circumstances, and if necessary seek professional advice. J.A.P TAXATION and its employees or any related entities, do not accept any liability for any loss, damages or outgoings rising out of the use of all or any part of information provided in this article.
 

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